The Turkish lira continues to depreciate in the world market

Turkish President Recep Tayyip Erdogan recently stressed the need to continue his policy of lowering interest rates in the country, Fars News Agency reported. This, along with concerns about rising inflation and declining Turkish foreign exchange reserves, caused the lira to depreciate against the dollar in trading today.

In today’s trading, the lira fell to 17.15 lira against the dollar, which is a short distance from the figure of 18.4 lira against the dollar, which was recorded on December 20 last year following a currency crisis.

In general, in 12 of the last 14 trading days, the value of the lira has been negative and has lost 23% of its value since the beginning of this year.

The lira also fell 44 percent last year. The depreciation of the lira, coupled with 73% inflation in Turkey in the months leading up to the mid-2023 elections, has put severe pressure on Turkish households.

The Central Bank of Turkey has been using its foreign exchange reserves to support the lira since December. This has led foreign exchange brokers to call the market space in Turkey a managed market.

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